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I hadn't planned on retiring in 2008. But the downturn in the economy, $4-a-gallon gasoline and a sinking building-materials industry (in which I worked for 40 years) made us reconsider. My wife was born in Peru, and we decided we should spend some time there.

So we sold our house and put our favorite belongings in storage, taking only two suitcases each for our adventure. We would give Peru one year; if we didn't like it, we would return to the U.S., enjoy time with our children and grandchildren, and try something else.

Almost five years later, we are still living in, and learning about, Peru.

From Ocean to Mountains

We aren't strangers to this part of the world. After we married, we visited Peru every few years for vacations. Little known to most Americans, the country offers a wide variety of climates and landscapes: Pacific beaches, coastal desert, the Amazon jungle and the Andes. Here, you can hike the Inca Trail to the ancient city of Machu Picchu (often identified as one of the Seven Man-Made Wonders of the World) or spend a week camping beside the Amazon River (often called one of the Seven Natural Wonders of the World).

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The Wheelers in the Andes
Fred Wheeler

We settled in Lima because we like its oceanfront setting and because of the Pontifical Catholic University of Peru. (More on this in a moment.) Home is a three-bedroom apartment in the Miraflores neighborhood, a nice mix of parks, shops and restaurants.

The weather is delightful, with temperatures rarely above the 80s in summer or below the 50s in winter. There is no ice or snow in Lima. Tornadoes and hurricanes are unheard of (though we do feel the occasional earthquake).

Expenses are low (but climbing). We live what would be considered an upper-middle-class lifestyle for less than $4,000 a month. That covers food, utilities, housing, transportation and incidentals. Health care is adequate and inexpensive. We are too old (late 60s) to buy insurance here, so it is all cash up front: about $40 to see a doctor and just under $100 for lab work.

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We don't own a car; we walk almost everywhere—for shopping, dining out, medical care, the local beaches. For longer trips, taxis are plentiful and inexpensive. A ride downtown or to the Pontifical University is about $4.

Back to School

And speaking of the university…I have long had an interest in archaeology. During our early vacations to Peru, I found myself marveling at structures and sites 2,000 years old (and older) and always would make a point of talking with the archaeologist in charge at the "digs" we visited.

At one point, a friend suggested that I contact the Pontifical University if I was serious about learning more. I submitted my college transcripts and was accepted into the school's International Exchange Program. To date, I have accumulated about 30 credit hours and continue to take one or two archaeology classes each semester. (What little Spanish I knew before moving I had picked up listening to my wife and her relatives. An intensive Spanish-language course here helped greatly, and now I enjoy the pressure of written exams, term papers and oral presentations in front of classmates and professors.)

During my first semester, I began to feel that classes alone weren't enough; I wanted to get my hands dirty! As luck would have it, Huaca Pucllana, a 1,400-year-old pyramid and active archaeological dig, is not far from our home in Lima. I work there as a volunteer—excavating artifacts, discussing elements of discovery with top specialists and helping unwrap ancient mummies.

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Of course, our lives here are more than archaeology. In the States, we always looked forward to three-day weekends; now, we take a three-day weekend every week. We visit some of the towns near Lima or spend a nice day downtown at the Plaza de Armas in front of the Presidential Palace or maybe see the Cathedral of Lima, founded in the 16th century by Francisco Pizarro.

I also have been asked to help with medical missions in the jungle. (When younger, I served in the Army as a medic.) The Peruvian American Medical Society organizes weeklong trips to remote areas where American and Peruvian doctors, nurses and technicians donate time, equipment and medicine. Each group consists of about 30 people; on each trip, we help about 2,000 patients who otherwise would receive little if any health care.

Peru certainly has its shortcomings. Rude drivers, with little regard for pedestrians, are a problem, as is the fact that everything here starts late (at least to our way of thinking). Some shops don't open until 11 a.m.; lunch usually goes from 1 to 4 p.m. and dinner from about 7:30 to 10. We've also noticed that people generally have no respect for waiting in line, much like in Europe.

But so far the rewards far outweigh any headaches. We probably will return to the U.S. at some point. (The pull of family is strong.) For now, we will continue to explore this beautiful country, and get my hands as dirty as possible.

Mr. Wheeler is a writer in Lima, Peru. He can be reached at encore@wsj.com.

Corrections & Amplifications Francisco Pizarro, the Spanish explorer, in 1535 started construction of a church in Lima, Peru, which was designated as the Cathedral of Lima in the 1540s. An earlier version of this article misspelled his name as Pizzaro and incorrectly implied that construction began in the 1540s.

I'm shocked by all of the people bashing retirement in a third world country. Maybe you should all do a little living before you die. Most major cities in these countries are remarkably first world as well.

After van travelling in Mexico, Belize and Guatemala in the 1970’s when I got back to Colorado the first thing I bought was a season pass at Aspen. Visiting on good money in a Third World is okay.

Visiting on low money in a Third World is not fun. Visiting on low money in a wealthy place is much easier. Assuming I was camping in my Chevy Van.

The same economics in CA. Yes housing is higher than many places. Those of us in the Central Coast pay zero air conditioning and almost no heat. Most activities are free. Hiking, biking, surfing. The local commute is low mileage.

Bravo, Fred Wheeler, for immersing yourself in the local culture. It's very tempting to hang out with the expat community and never learn anything beyond superficial characteristics of a new culture & ethnicity. I applaud your willingness to make the effort to learn and contribute, especially while struggling to learn a español.

The state hospital charged me $8 bucks.The same stay here was $2000+same reason , hornet sting and infection.same treatment, antibiotics. (15min in USA, but they watched me for 8 hrs in PERU ! )the Doctor (she) was educated here and loves Americans and love to treat them.. super service !

We do have the best health car in the world, that no one can afford. (it will break this country, )My wife is young, so I must foot the whole bill here. Insurance. every day it gets more expensive.2014 will be the killer, with the "no life and annual caps" There is no way to calculate the ins. costs.so dig deep, all you workers,, , (and me)

Charleen, the plane flies many times a day (tourists to the max) and you can be home in 5 hrs.I land in Houston, and can be in the Hospital in 6hr. (if you are in I'll health that be diffr, huh>?)

Btw , you can walk home from Peru and not Asia.... my friend makes that joke all the time.His dad moved from NY to Honduras (lives like a king there! )think about it.? (you can retire anywhere,and guess what, change your mind at the drop of a hat, sure can)we are free.!(one ferry ride , excepted in central Amer.) the GAP. I plan to do this,just for fun soon. at 65!http://en.wikipedia.org/wiki/Dari%C3%A9n_Gap

The author says they're probably coming back to the U.S. They haven't retired there; they've just had an extended vacation.

Your Medicare, of course, doesn't travel with you. The Wheelers (at the time of writing) are in their late sixties and still relatively healthy but they must recognize that could change quickly. Either heart disease or cancer could be treated more effectively in the U.S. -- don't try to tell me otherwise. It would be more prudent to return on their own terms rather than for a medical emergency.

one should say that these "third" world countries are really a mix of socio-economic strata as is our USA. you can go cheap, mid or relatively high cost. Peru and Colombia are the two nations that have changed the most since 2000. Argentina, Mexico, Brasil and Chile were on that path in the 1990s.

I spent a month in Lima, Peru, well actually it was a week. I would never go back. It was a dump. And that is the truth the whole truth and nothing but the truth. Montevideo, Uruguay is a much nicer city and just as inexpensive.

Retirement and Good Living just released its 2013 selections for best places to retire overseas at retirementandgoodliving.com/best-retirement-locations-abroad-2013/also the best US retirement locationsretirementandgoodliving.com/best-retirement-locations-in-the-us-2013/

Mr. Wheeler had visited Peru many times, and most important, had a wife who came from that country and presumably had local knowledge and understood the "system". That is very different from someone without such advantages just deciding to live in a Third World country.

I made frquent business trips to Lima during the 90s. Unless things changed, it was like going back in time......... While walking out of the airport to catch a cab to the city, you are overwhelmed by kids selling candy, old vans used as taxis, but with the driver's family members riding along - the kids hanging outside yelling "taxi". The streets are filled with, old european cars, scooters, bicycles, pedestrians within inches of death - all using the same street space. Vehicles speeding, weeving recklessly & constantly sounding their horns. All just a normal day's constant confusion !! Not For Me.........

In my view, it is a step fraught with risk to retire in a foreign country. Retiring in a third world one I consider foolish.

Aside from that, I think such a move supposes you have no family, or that said family is so financially comfortable they will have no problem visiting. I had to visit regularly my aged and ill father in Paris, while having a job and family in the States. It was very hard, and whichever place I was, I felt guilty for neglecting the others. I decided then and there to abandon my dream of retiring in France, as I didn't want to inflict the same problems on my children.

While I agree that Peru offers some unique archaeological sites and outstanding cuisine, that must be balanced against the soaring crime rate (armed robbery and homicides) that have caused tremendous concerns among Peruvians. The US State Department rates Peru CRITICAL for crime due in part to the country having one of the highest reported crime rates in Latin America. Peru also has one of the highest road fatality rates in Latin America and being involved in an accident is particularly worrisome since the medical care (outside of private clinics in Lima) is very spotty and hospitals often lack the medicines and diagnostic equipment required to treat patients. Also you must pay first, or be covered by Peruvian private health insurance, before you will receive any medical care - otherwise you will be unattended - there are very valid reasons why Peruvians opt to go to the US for medical treatment. Although Lima is close to a major earthquake fault line, there is no infrastructure preparedness to address that possibility. There are not enough hospitals or clinics, enough police and firefighters, enough civil defense personnel, or any medical evacuation helicopters - the Peruvian government is literally unprepared for the most likely natural disaster. The response in Peru to a major earthquake will definitely not resemble in any way the professional response and disaster recovery seen in Chile after the major earthquake there in 2010.

These are factors, in addition to the positive factors cited by the author, that must be seriously considered before packing suitcases and heading to Peru for retirement.

I don't know what caused you to react so strongly to Lima. It is quite a nice city in my opinion, although I don't like the 6 or so months of winter fog along the beach. Avoid the dumpy areas and you have solved your problem.

Donald - Until you experience the traffic in Lima, you might not believe that it is a blessing to be able to afford a cab (or better yet a dedicated driver) to take you anywhere.

One can subsist in Peru very inexpensively but that is probably not the goal of the writer. It looks like he still wants to live and learn rather than stretch his money every which way.

I'm probably not going to convince you that Peru is the retirement destination for you but it might be for others. Calling people idiots does not speak well of your views on personal freedom and the right to self determination. If they are truly idiots, you probably should encourage them to leave the USA, right?

Kevin,You have listed all the things I like about Peru. (Lived there in the 1960s & visited a few times in the 1970s). Chaos keeps you on your toes, is my view. In fact, now that I think about it, Peru is a libertarian dream. Few rules. Oh, and the food is fabulous. Dan

Kevin - The chaos and congestion remain but there has been a tremendous leap forward in terms of the quality of the vehicles and the services offered across the country. Although he is disgraced for the methods employed during his government, President Fujimori turned the country around by allowing entrepreneurship to flourish and attracting foreign investment. Real estate prices have skyrocketed and people are enjoying their new found wealth. This might be a bubble but I am envious to see so many construction cranes in Peru and so few in the USA.

i have a beach house. in the south. 80-100km south. 10 years ,now. (snow bird)you learn how to travel and where not to go... just like all places.a cheap condo goes for 30k. He lives in the best town in south lima, no smog, most other parts are bad and getting worse , no smog tests. Choke Choke.Getting like LA in 1970 . ever experience that?I have flown all over Peru, and it's a great country.. Just stay away from lima center.if you must go, call a certified cab. all cabs are dirt cheap, (neg. price before board ! so cool no stinking meters) $3-4 to where ever in the city.stay out of tiny Tico cabs (all drivers nutz, passing into cross traffic.etc) but do ride the taxi moto's (3wheeled) for 1 sole.. 33cents. There really is no need for a car, there, with vast taxi cabs... seems near infinite.Even far North in Mancora beach, Taxi moto's , nice surf too. Btw they have buses with a first class section! (bottom)Captains chairs,curtains, and service, +

The food is nothing less than fabulous. Ceviche ! and in the market VAST produce , year round.When you get old, or just want help. servants are very affordable, about $100 weekSame with retirement homes, You don't need to force your kids to take care of you, and I will never.I'll just stay there. (PS no recession, it's booming... there, for 10 years) and don't walk around with Passport in that silly neck purse, you be a gringo. !

Andrew - The author lives in an area that has always been a desirable place to live. The Peruvian economy has been on a tremendous growth path the past 15 years which has put money in the pockets of locals. In addition, the currency has appreciated roughly 30% against the US Dollar in the past seven years. Had the US economy performed better, maybe the author would only be spending $3,000 a month.

Two words: Oh please. The Shining Path, awful & violent as it was, is no longer a force in Peru. Yes, remnants exist, chiefly in frontier areas, but the Shining Path of the 1980s and 1990s is gone. Dan

Jack - I do not have a wealth of knowledge about Lima but I certainly am very familiar with Arequipa in the southern part of Peru. My mom lives in an old house made of volcanic rock known as "sillar". Despite the numerous devastating earthquakes in Arequipa, it has survived all of them. The older construction in the city center, however, has not fared as well. My main point is that you are focusing on the worst case scenario which is certainly your prerogative. My experience is that the country is getting better each year regarding disaster preparedness. I was in the Lima airport in August when everyone was required to participate in an earthquake simulation by evacuating the airport.

I don't have statistics about armed robbery in Peru but I do agree that everyone is vulnerable. Two of my nephews were robbed at gun point in Lima while an uncle of mine was stripped of his belongings and left in the outskirts of Arequipa after he got into a cab. These incidents happened within the last three years. I do not walk the streets of Arequipa in fear but I do put my wallet in my front pocket and am constantly assessing my surroundings.

The health care system has improved tremendously and is one that I am very familiar with. You are correct that one has to pay upfront unless one has insurance coverage. My mom was in a state-owned hospital recently and was covered under the government program that she paid into for many years. The equipment, facilities, medicine, and care were inferior compared to what she would have received in the USA. However, she left the hospital without a bill to pay and with the possibility of a full recovery.

There are many positive aspects about life in Peru that I would enjoy sharing with you but one that most people don't think about is the quality of the food. My wife is prone to migraines and believes that the food in Peru is devoid of the many additives and preservatives that are part of the food chain in the USA. In addition, the constant growing seasons allow one to enjoy high quality fruits and vegetables at a very low price anytime of the year.

In summary, my wife and I would definitely consider becoming at least "snowbirds" in Peru not only because of our family connections, but for the endless adventures one can have in Peru.

Um, Andy, the "community organizer" inherited a catastrophic recession & two disastrous wars from his predecessor, "mission accomplished." Unemployment is declining, the stock market has recovered, the housing industry is recovering. Not bad for a "community organizer." Dan

Exactly. My dad is from Bolivia and they tell him that they can tell if you are a "US American" just by the way we walk. This is good and bad. They know there will be higher penalties for violent crime, but soft crimes: overcharging for everything, graft and bribery. They don't hate us in Bolivia, but they assume we have far more money (as we do) and expect us to pay up.

Andrew, one thing that you have to be vary careful of are crime statistics in developing countries. Because of the lack of an effective police force and an incompetent and corrupt judicial system, most crime goes unreported since the population feels that the effort to report it is futile - the probability that there there will be an effective investigation is low, that he criminal will be captured is very low, that he will be tried is even lower, and that he will be convicted is lower still. Whereas in the US, almost all crime is reported since the citizens expect the police to investigate and apprehend the criminal and that he will be brought to trial and convicted.

That consideration aside, I find your crime rate statistic of 5.2 per 100k most questionable since the latest UN statistics for homicides alone in Peru are over 10.1 per 100k.

In the Lima papers today, 73.6% of people interviewed said they were seriously concerned about their personal safety.

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